"National AI Development Difficult Alone for Government or Companies... Must Be Based on Public-Private Cooperation"

South Korea Ranks 6th in Global AI Market, but Gap with US and China Remains Wide
Cooperation from Local Governments Needed for Establishing Data Centers

There has been a suggestion that cooperation between the government and private companies is essential to enhance the competitiveness of South Korea's artificial intelligence (AI) industry. The argument is that neither the government nor companies alone can take the lead in the global AI hegemony race, so investment and implementation should be carried out based on public-private cooperation.

Lim Kinam, Executive Director and Head of the Public and Education Business Division at Naver Cloud, stated at the 'Policy Forum for Strengthening National AI Industry Competitiveness' held on the morning of July 16 at the National Assembly Members' Office Building in Yeongdeungpo-gu, Seoul, "The global AI competition is an all-out national-level contest," adding, "Neither a single AI company nor the government alone can achieve growth."

On the morning of the 16th, participants are taking a commemorative photo at the 'Policy Forum for Strengthening National AI Industry Competitiveness' held at the National Assembly Members' Office Building in Yeongdeungpo-gu, Seoul. Photo by Lee Myunghwan

Currently, the United States and China, considered the global AI leaders, are pouring massive resources every year to accelerate the race for AI supremacy. The United States is implementing the Stargate Project, a 720 trillion won initiative to build AI infrastructure, while China is pursuing a state-led AI development strategy with plans to invest approximately 2,000 trillion won by 2030. Although South Korea ranks sixth in the global AI market, the gap with the United States and China, which are ranked first and second respectively, remains significant.

In this context, Lim suggested that the government and private companies should divide their roles and jointly compete in the AI sector. He argued that the government should be responsible for infrastructure and investment, such as AI semiconductors and data centers, while private companies should swiftly carry out their businesses based on government support. Lim noted, "Since last year, the government has significantly increased investment in infrastructure," and evaluated, "It is encouraging that the government is increasing investment in infrastructure and foundation models to realize sovereign AI."

The proposed areas for public-private cooperation to strengthen AI competitiveness include infrastructure, projects, and overseas exports. In terms of infrastructure, cooperation is needed from local governments to establish data centers, as well as to address power supply and cost issues for AI data centers (AIDC). Regarding AI projects, there is a need for industry-specific specialized models. Lim stated, "How to utilize and apply large language models (LLMs) is a key issue," and emphasized, "Both the public and private sectors need to consider specialized models for fields such as healthcare, education, and defense."

Public-private collaboration is also necessary for exporting AI overseas. Examples include developing industry-specific AI for export through public-private cooperation, or creating public sector specialized models to generate public demand. The sovereign AI initiative being promoted by the government is also considered essential for overseas exports. Lim stated, "If our country has so far been in a following position in the AI competition, it is now time to move forward as a leader."

Lim stressed, "AI projects can never be successful from the very beginning, so continuous improvement and supplementation are required," and emphasized, "Consistent investment, rather than large-scale one-off investments, is continuously necessary."

The forum was co-hosted by National Assembly members Choi Hyungdoo and Han Minsu, along with the Korea Internet Corporations Association.